WebSolow model Mechanics of the model We can write Solow’s equation as gk(t) = k_ k = s r(k(t)) (n + ) low k(0) means r(0) is high relative to n + this implies high incentive for saving and for accumulating capital but capital accumulation decreases the marginal productivity of capital because rk(k) = @r(k) @k < 0, which WebAug 14, 2015 · Solow’s Choice. Because history casts a long shadow, I think it is worth getting the intellectual history of macroeconomics right. Solow’s choice about how to respond to critique of the large macro simulation models is every bit as important to this history as the subsequent decisions that Lucas and his followers made to withdraw from …
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